By YANG Shihan, ZHOU Shuqi
State-owned automaker JAC Group is selling two of its EV factories for 4.5 billion yuan. Whoever buys the plants will also obtain the qualification to manufacture EVs.
The two plants currently make EVs for Nio. Chairman of Nio QIN Lihong confirmed that the move will not affect the production of Nio and refused to comment more.
Since 2016, all Nio EVs have been manufactured by JAC. In March 2021, Nio and JAC founded a company to manufacture most Nio models until May next year. With the deal about to expire, Nio may want to take over the factories and go it alone.
Earlier this year, Nio’s rival Li Auto acquired Hyundai’s Beijing factory and qualification to make EVs.
EV startups that find it difficult to make their own cars turn to other automakers. Xpeng worked with Mazda before its own factories were built.
Despite the trend of new players establishing their own factories, the demand for contract manufacturing has not disappeared. A report from Zhongjin Securities points out that in the context of prolonged low profitability, contract manufacturing remains a viable option.
